Lloyd's reinsurance business has grown strongly in recent years, with a five-year compound average growth rate of 9%. Specialty reinsurance was the fastest growing line with a five-year compound average growth rate of 11%. In 2024, the market's reinsurance premiums grew by 8%, driven by material growth in property and specialty lines, and benefitting from a positive risk-adjusted rate change along with low-single digit economic inflation. However, a minor contraction was noted for casualty reinsurance in 2024 despite pricing improvements, largely driven by performance pressures for this line, according to a new AM Best report.
The Best's Market Segment Report, "Underwriting Cycle Management Becomes Crucial for Lloyd's Amid Softening Market Conditions," forms part of AM Best's look at the global reinsurance industry during the Rendez-Vous de Septembre in Monte Carlo. Additional reports, including AM Best's annual analysis of the world's largest reinsurance groups and in-depth looks at the insurance-linked securities, life/annuity, health and regional reinsurance markets, have been published during August and September.
Lloyd's is a leading player in the global reinsurance space and reinsurance represents its largest segment, accounting for around a third of its gross written premium (GWP) in 2024.
"Although moderating in comparison to 2023, the overall performance of Lloyd's reinsurance segment remained strong in 2024, with the market reporting healthy underwriting profits of GBP 1.7 billion and a combined ratio of 88%," said Kanika Thukral, associate director, analytics, AM Best, and one of the report's authors. "The reinsurance segment's underwriting results for 2025 are expected to be impacted by the California wildfires, for which the estimated loss for the overall Lloyd's market, including insurance, is approximately GBP 1.7 billion and is expected to consume a third of the total market's 2025 natural catastrophe allowance."
To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=357474.
For all global reinsurance reports ahead of Rendez-Vous de Septembre, please visit AM Best's Reinsurance Information center.
AM Best will host its annual reinsurance market briefing at Rendez-Vous de Septembre on 7 September 7, 2025, at 10:15 a.m. (CEST) in Monte Carlo. For more information, please visit the event website.
AM BestTV will be conducting interviews from Rendez-Vous de Septembre as well. Please visit the event playlist for video interviews on AM Best's global reinsurance reports and executive interviews during the conference.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com
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Contacts:
Timothy Prince
Director, Analytics
+44 20 7397 0320
timothy.prince@ambest.com
Kanika Thukral
Associate Director, Analytics
+44 20 7397 0327
kanika.thukral@ambest.com
Richard Banks
Director, Industry Research EMEA
+44 20 7397 0322
richard.banks@ambest.com
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com
